As Nifty failed to end above the 18,000-mark for four days in a row, the headline index formed a Doji candle on the weekly charts. A tug-of-war was visible between bulls and bears throughout the week as wicks of the candle were of equal size on both ends indicating indecision among traders.

The index now has to hold above the 17,950 zone for an up move towards 18,081 and 18,181 zones, whereas supports are placed at 17,850 and 17,777 zones, said Chandan

of Motial Oswal.

Fear gauge index India VIX was down by 5.37% from 15.27 to 14.46 levels. Volatility cooled off during the day and accelerated the bulls at support zones. It needs to now come below 14 zones for stability to resume.

Option data suggests a shift in trading range between 17,700 and 18,300 zones while an immediate trading range between 17,800 and 18,200 zones.

What should traders do? Here’s what analysts said:

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by

For the last few weeks, the index is trading above the 20-WMA, which has resulted in a triangle pattern formation on the daily chart. After a recent base formation near the lower end of the pattern, Nifty witnessed smart recovery on January 13. Going ahead, 18,000-18,050 will be the key area beyond which the index will be set for a larger up move. On the downside, 17,800 will continue to provide cushion for the index.

Rohan Patil, Technical Analyst, SAMCO Securities
The present scenario for traders has become very difficult because as volatility in the market has shot up on the one side and the trading range has narrowed down considerably on the other.

The benchmark index this week has made a couple of attempts to breach 17,800 – 17,780 levels but was not successful as prices were continuously finding support near that zone.

Currently, traders should wait patiently for the prices to break above 18,150 or below 17,800 levels to initiate the next actionable move because presently the market is in no trading zone.

Ajit Mishra, VP – Technical Research, Broking
The recent recovery in the global markets has failed to impress the participants so far. However, the mood might change if they manage to sustain the gains. To regain some strength, Nifty should decisively cross the 18,100 mark. Meanwhile, participants should restrict positions and prefer a hedged approach.

Rupak De, Senior Technical Analyst at
Nifty sustained below the 50-EMA on the daily timeframe, confirming an ongoing bearish trend. The resistance is visible at 18,300, whereas on the lower end, support is visible at 17,800. Any breakout in either direction would create a directional trend in the market.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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